THRY

Thryv Holdings ($THRY) Chairman Executes Second Major Stock Purchase Despite Disappointing Earnings

05/08/2025 20:48

Thryv Holdings ($THRY) Chairman Joe Walsh has made another significant stock purchase amid the company's recent stock price decline. According to an SEC Form 4 filing, Walsh acquired 5,000 shares at an average price of $13.40 on May 7, bringing the total purchase value to $67,000. This acquisition comes as Thryv's stock has experienced substantial volatility. $THRY suffered a sharp decline in early April, falling approximately 29% from $14.44 in late March to $10.25 by April 8. Particularly notable was the nearly 11% drop on April 4, which coincided with a significant decline in the U.S. dollar. While the stock has recovered somewhat since then, it remains considerably below its early 2025 levels. Walsh's latest purchase marks his second significant acquisition this year, following a previous 5,000-share purchase on March 3 at $16.45 per share. Notably, both transactions were executed pursuant to a Rule 10b5-1 trading plan, which indicates these purchases were part of a pre-established plan rather than reactions to non-public material information. Thryv Holdings provides cloud-based business management and marketing solutions for small and medium-sized businesses. The company made headlines last October when it announced an equity offering to finance the $80 million acquisition of Infusion Software (Keap). This offering involved issuing approximately 5.7 million shares at $14 each, which immediately triggered a 16.8% stock price drop to $15.25, a level from which the stock has struggled to recover. The company's recent financial performance has been challenging. In its Q1 2025 earnings release on May 1, Thryv reported an adjusted loss of $0.22 per share, a significant deterioration from earnings of $0.22 per share in the same quarter last year. Revenue decreased by 22.4% to $181.37 million, though this figure slightly exceeded analyst expectations of $173.83 million. Notably, Walsh isn't the only insider showing confidence in the company's stock. March 2025 saw additional insider purchases, with Director John Slater acquiring a total of 1,000 shares across two transactions, and President Grant Freeman purchasing 500 shares. This followed earlier buying activity in September 2024, when Walsh (1,500 shares), Director Amer Akhtar (1,200 shares), and Slater (500 shares) all made acquisitions. This consistent pattern of insider buying suggests that management maintains strong confidence in the company's long-term value and growth potential. The willingness of senior executives to invest their personal capital despite disappointing results and share price performance may indicate they believe the stock is currently undervalued. Analysts largely remain positive on $THRY despite recent challenges. The current average analyst rating is 'buy,' with a median 12-month price target of $25.00, approximately 87% above the current trading price of $13.39. This indicates that market experts continue to see significant upside potential in Thryv's business model. Thryv Holdings is strengthening its position as a provider of solutions for small businesses in an increasingly digitized environment. The Infusion Software acquisition represents a strategic move to expand the company's Software as a Service (SaaS) product portfolio, which could serve as a growth driver over the long term. However, short-term challenges persist, including increased costs associated with acquisition integration and slowing revenue growth. Additionally, intensifying competition in the small business market and broader economic uncertainties present ongoing risk factors. Investors should take note of the confidence signal provided by consistent insider buying despite recent disappointing results and stock performance. The chairman's repeated large-scale purchases suggest that current price levels may present an attractive entry opportunity from a long-term perspective. Nevertheless, substantial volatility may continue until clear signs of performance improvement emerge, warranting caution for short-term investors.

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